Norway’s government announced Tuesday it would review its sovereign wealth fund’s holdings to assess whether any Israeli companies involved in Judea and Samaria or the Gaza conflict should be excluded from investment, Reuters reported.
The move comes after a report by Norwegian newspaper Aftenposten revealed that the $1.9 trillion fund had increased its stake in Bet Shemesh Engines Ltd., an Israeli firm that services the IDF, including maintenance of fighter jets.
Norwegian Prime Minister Jonas Gahr Stoere voiced concern over the fund’s involvement. “We must get clarification on this because reading about it makes me uneasy,” he was quoted as having told public broadcaster NRK.
According to Norges Bank Investment Management (NBIM), which oversees the fund, it acquired a 1.3% stake in BSEL in 2023 and increased it to 2.09% by the end of 2024, amounting to $15.2 million in shares.
Norwegian Finance Minister Jens Stoltenberg confirmed that the central bank would now examine NBIM’s Israeli holdings, citing both the media report and the ongoing security situation in the region.
NBIM CEO Nicolai Tangen noted that BSEL had not appeared on any exclusion lists, such as those maintained by the UN or the fund’s own ethics council.
Despite calls from some parliamentarians, Norway’s legislature voted in June against a proposal to divest from all companies operating in what it refers to as “occupied Palestinian territories.”
The fund, guided by ethical principles set by the Norwegian parliament, has already blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq.
As of late last year, the fund had just over $2 billion invested in 65 Israeli companies, representing 0.1% of its total portfolio.
Norway, together with Ireland and Spain announced last May that they intended to recognize the “State of Palestine”.
The announcement came after Ireland, Spain, Slovenia and Malta announced that they would jointly work toward the recognition of a Palestinian state, arguing a two-state solution is essential for lasting peace in the region.